A Glimpse into the Future of London’s Offices
In a recent report carried out by Estate Agent, Knight Frank, predictions of what the next five years has in store for London’s working environments has been revealed.
In an article for Estates Gazette Magazine, it is predicted that the real estate sector will recover from the recession between 2012 and 2014, due to investment from wealthy Asia Pacific investors, and advances in technology. by 2015, London will be able to rein in some of the profits from the business expansion that has characterised the last few years, meaning that by 2016, a new cycle in real estate will begin.
Knight Frank states that ‘the city will become home to a large cluster of multi-let towers… but unlike today, these will not be dominated by a single tenant’. The size of serviced office space is also set to drop, with a typical Headquarters’ requirement being around 200,000sqft, rather than 500,000sqft as it stands now. factors concerning location are also set to change, with specific focus on the West End and the City of London.
Locations to look out for in 2016 include areas such as Clerkenwell and Farringdon, which are already becoming a sough-after spot for creative establishments. Locations that are popular now, such as Old Street, may become more residential, as these old, concrete buildings will not be desirable to landlords.
Kings Cross, Euston and Paddington will form a Northern corridor of office space, and continue to attract corporate tenants, whereas the South of London, and areas such as Victoria – once encompassing a government-dominated image – will shrug off this perception, and attract businesses who seek modern offices at a discounted price.
Some of the most affluent and prestigious locations in London, such as Mayfair and Knightsbridge, will have to make way for up and coming areas, including St James’s and Kensington. The West End will also see big changes, as current tenants relocate to the fringes of London, and contemporary, ultra-expensive business centres become sough-after residential properties.
Certain aspects are predicted to remain the same, including the notion that companies’ main focus will be to seek out office space in credible, respected areas, in the hope to create a reputation for their business, no matter how large or small it may be. The total number of office workers in the city is set to rise by 9% in 2016, with more than 380,000 people occupying serviced office space. Because of this rise, and the change in ‘fashionable’ areas, Knight Frank warn that ‘rent and availability of quality stock will force firms to look at new locations’ that are on the outskirts.
Office and working environments are also set to change, with the focus being shifted to interpersonal activity between employees, who wish to use their office space as an area to share knowledge. One of the most important factors will be employees’ well being – tenants will be looking for office space that is built around the notion that ‘people are high value and need to be kept happy’ if business want to succeed. This may also mean that there are less work stations, more break areas, and more quiet meeting space.
These changes point to a less stressful working environment, and cheaper rental rates, which is hugely beneficial for businesses, companies, and staff. I for one, am looking forward to these predictions!
To find out more about office space in the London, talk to Search Office Space now on 0800740 80 80 to discuss your requirements.